To those who are new to the world of product sourcing, the thought of a business in Europe sourcing items from Asia, when they could just source locally instead, must seem bizarre. That’s like flying to the other side of the world because you are craving a burger when there’s a restaurant down the road from you.
So, why do European countries source products from Asia? There has to be a rather compelling reason? In this article, we’ll tell you everything you need to know.
The unbeatable benefits of product sourcing from Asia
There are a number of reasons why European countries choose to source their products from Asia. Here are some of the primary advantages that you can gain:
1. Up and coming economies
Asia is home to some of the largest economies in the world that doesn’t look as though it is going to change any time soon. In fact, many countries like Thailand, Vietnam, and the Philippines (to name a few) have been experiencing an impressive amount of economic growth. This is creating some amazing opportunities for European businesses to source products overseas for the benefit of their business… such as:
2. Specialized products
Many European businesses choose to source their products from Asia because of the attractive specialisation benefits. In other words, there are certain Asian countries that specialise in manufacturing certain items better than anyone else in the world. For example: China and Hong Kong have long been recognised as manufacturing the finest electronic products in the world, just as India is recognised for producing exceptional garments at competitively low prices.
So, if there is a specific type of product that you need and you’d like only the finest, often you need to look overseas to satisfy your requirements.
3. Lower costs
The main reason to source products from Asia is of course, because of the low production and labour costs in the majority of Asian countries. That, and as the region accounts for a third of the world’s total population, it means that there is a large labour force ready and willing to work! Check out our low cost country sourcing article for more info!
Wages in Asian countries are comparatively low than the western world which means that you can quite easily find the skillset that you need for your manufacturing requirements, without having to pay a premium.
Not only that, but there is greater access to raw materials in Asia, which in turn lowers the production costs involved with a wide variety of products. Typically speaking, you can expect to save at least 20% more than you would if you were to source locally or from any other part of the world. For large and growing enterprises, this is a considerable amount of money that can be fed back into the business.
If you want to go further and save even more money, many people choose to work with a product sourcing and supply chain management company. This is always recommended when you are tapping into a foreign and unfamiliar market. With connections in place, boots on the ground, and a thorough knowledge and understanding of local business etiquette, your product sourcing partners can connect you with the most reputable suppliers and negotiate even more attractive deals.
4. A larger supply base
There are many equitable Asian suppliers that have worked hard to establish an exceptional reputation. This is what many rely on for their business to survive and thrive in such a competitive marketplace. In fact, it is this high level of competition that works massively in your favour as it makes it easier to negotiate better terms and enjoy a more personalised service.
There is a downside to this however: as there is such a large supply base in Asia, it does mean that you have a greater chance of being taken advantage of. As such, you really do need to be exceptionally careful when it comes to selecting the right suppler to work with.
Again, the best way to avoid this is by working with a product sourcing agency with an established presence in the region. When leveraging the expertise of those who understand the Asian market better, you won’t need to worry about being duped; a quality product sourcing agency will know what signs to look out for and steer you in the right direction.
5. Excellent quality of product
One common concern that people have when sourcing from overseas is whether they will be having to compromise on quality. Certainly, you may be able to save a significant amount of money on your products, but what happens to the quality in return?
Contrary to what you might think, Asian products are typically made to an exceptional – internationally recognized – standard. This is largely due to the immense competition in this industry. As such, regular training and the adoption of new, innovative technologies is common in Asian manufacturers.
6. Impressive efficiency
Production and manufacturing companies in Asia are world-renowned for their efficiency. They must maintain excellent manufacturing speed in order to ensure that they remain at the top of the list and that European countries continue to source from them.
Whether you are working to a tight schedule and have high demand for a product that needs to be produced quickly, without compromising on quality, Asia production standards are typically carried out with great speed, quality, and efficiency.
If you tie it all together with a product sourcing and supply chain management company, you will have airtight logistics in place. So, not only will your products be manufactured quickly and to a standard that meets your expectations, but they can be moved from A to Be with the utmost speed and efficiency as well.
The takeaway
Working closely with a product sourcing agency will take all of the benefits of sourcing in Asia and multiply them. You’ll be able to enjoy the consistency of quality products coupled with the timely arrival of your goods.
If you want to save a significant amount of time and money for your business, then we highly recommend that you explore this avenue further.
